Overview of Singapore Public Housing Story

A division of

Overview of Singapore’s Public Housing

Mr Chionh Chye Khye CLC Fellow OVERVIEW

• Introduction & A Bit of History

• Key Success Factors Singapore: A City-State’s Challenges

5.40 Million • Population of 5.535 mil • Land area of 719 km2 • 7,698 persons/km2 density • Hi-rise hi-density living Structure of Real Estate Market in Singapore Housing Market

Public Private

Home Rental Home Rental Ownership Ownership 1R / 2R / 3R / Landed property, 4R / 5R / EF / Condominium Studio Apts & ECs

Primary Secondary Primary Secondary Market Market Market Market (HDB) (Resale) HISTORY: TURNING A CITY OF SQUATTERS TO A HOME OWNING SOCIETY Housing Landscape: 1950s

City Fringe Squatters

Inner City Shophouse-cubicles

•Rapid Population Growth •Poor Housing Conditions •Severe Housing Shortage Rural Villages/Farms SIT 1927 to 1959 The Vision

“ My primary occupation was to give every citizen a stake in the country and its future… if every family owned its home, the country would be more stable… I believe this sense of ownership was vital for our new society… ” Mr. Lee Kuan Yew, Prime Minister of Singapore Housing & Development Board Established in Feb 1960

9 “Home Ownership for the People” Scheme

1964: Home Ownership for the People Scheme • Targeted at lower-middle and middle-income households • Intended to give Singaporeans a stake in the country • Public Balloting conducted to allocate flats to applicants • Low-interest government loans available to those who were not able to afford outright purchase

4,500

4,000 3.9 million

3,500 Estimated 3.2 million 3,000 Resident Population 2,500 Resident population

2,000 in Public Housing

1,500  82% (2015)  23% (1964) 1,000 Estimated Resident Population living in 500 HDB Flats

0 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

© 2016 Housing & Development Board Public Housing Today • Over 80% of Singapore’s resident population lives in HDB flats • 95% own their homes Social Class Integration: Variety of Housing Options within a neighbourhood

High Private Property

Exec Condo

3Gen/ Executive/ 5-room Financial Ability 4-room

3-room

2-room Flexi HDB Flats Low Rental flats

1950s 1960s 1980s

2000s

Punggol Waterway Terrace The Pinnacle@Duxton Key Success Factors

• Land allocation for HDB housing through Land Acquisition Act • Government funding to HDB for development and for mortgage loans to purchasers • Government’s emphasis on home ownership & affordability • Emphasis on community building • Focus on estate maintenance and upgrading • Favourable economic environment: high growth, low unemployment, long- term appreciation of housing values Land Acquisition Act

• The Land Acquisition Act allowed the government to acquire 17,692 hectares of land between 1959 and 1984

• This represented 30% of Singapore’s total land area (excluding reclaimed land)

• Half of this land was given to HDB for public housing

• Land acquisition was done relatively cheaply and quickly which in turn allowed Public Housing to be developed with low land costs and at a very fast pace Central Provident Fund (CPF)

• The CPF was set up in 1955 as a retirement scheme with contributions from both the employer and employee

• Government sells bonds to CPF Board and uses fund to finance development of public housing and infrastructures

• In 1968 CPF savings was allowed to be used for the purchase of HDB flats

• In 1981 CPF savings was: allowed for the purchase of private residential properties in Singapore Why Home Ownership?

Provides Provides a stake in an asset & a the country store of value Key Benefits Promotes Encourages rootedness better & belonging maintenance Builds strong work ethics

New Flat Resale Flats Executive (market discount) (market value) Condominiums

Family Grant Proximity Housing Family Grant ($30k) Grant ($20k)* ($10k - $30k)

Additional CPF Housing Grant ($5k to $40k)

Special CPF Housing Grant ($5k to $40k) + Concessionary Concessionaryloan loan

Land Cost - Land Acquisition Act (LAA) • 1966 LAA – enabled state to compulsorily acquire land for public purpose at a reasonable price

Construction Cost • HDB cut red tape, broke cartels, ended payment delays & corruption, ended over-specification, raised productivity, instituted open tender and fair contract practices

• HDB built brick, sand and granite quarries, award bulk contracts for steel bars and cement COMMUNITY BUILDING HDB’s Framework for Community Building

Multi-racial High-rise Multi-cultural High-density Society Housing

Social harmony and integration is key

Conscious effort to build social cohesiveness

“Hardware” “Software” “Heartware”

Physical Design Public Housing Policies Community Building

Void Decks Plazas

Precinct Spaces Commercial Facilities Software

• Policies encouraging family formation and extended family living

• Ethnic Integration Policy to maintain racial harmony Promoting Strong Family Ties

• First-timer Priority Scheme

• Parenthood Priority Scheme

• Married Child Priority Scheme

• Multi-Generation Priority Scheme

• Ageing in Place Priority Scheme Racial Integration: Ethnic Integration Policy (EIP)

• Implemented on 1 March 1989 to promote racial integration and harmony in HDB estates

• In 1989 the EIP Quota was as follows and it largely follows the ethnic proportion in the population today Ethnic Group The permissible The permissible proportion of flats in proportion of flats in each neighbourhood each block

Malays 22% 25% Chinese 84% 87% Indians and Others 10% 13% Heartware

Completion Ceremonies & Welcome Parties

Public Education - Guidelines and Guidebook

Out reach efforts - Dialogue Sessions, Public Talks Heartland Greening, Good & Exhibitions Neighbour Award ESTATE MANAGEMENT AND MAINTENANCE Town Councils

• Town Councils Act was passed in 1988 • Allowed Town Councils to take over management and maintenance of common property at public housing estates from HDB • Empowered local elected representatives and residents to run their own estates • Jointly run by elected Members of Parliament (MPs) and residents through grassroots organizations Responsibilities of Town Councils

• Manage and maintain the common areas of HDB flats and commercial properties within the town • Control and improve these areas according to the residents aspirations

• Common areas include: • Common Corridors • Void Decks • Lifts • Water Tanks • Public Lighting • Open Spaces Roles of Government Agencies

• Ministry of National Development (MND) sets the broad legislative framework and financial guidelines under the Town Councils Act and Town Councils Financial Rules to ensure proper governance and accountability by Town Councils.

• As the public housing authority, Housing & Development Board (HDB) advises and assists MND in its regulatory duties. HDB also works closely with Town Councils in its capacity as the owner of common property in HDB estates. Estate Inspections for TCMR

• HDB officers collect data for the “Maintenance and Cleanliness” indicators from the TCMR • To ensure consistency and accuracy, officers are guided by a set of performance standards checklist during inspection. • Cameras are used to record and substantiate any findings • To ensure fairness and transparency, Town Council Staff are invited to join the inspections, which are carried out on weekdays between 10am and 5pm • All HDB blocks will be inspected a least once annually, with the inspections spread out so that Town Councils will have inspections every month Examples of Inspection Observations: Estate Cleanliness • Stain and litter • Dumped bulky refuse • Moss/cobwebs • Graffiti • Human/animal faeces The need for Estate Upgrading

• Fulfil the people’s expectations of an improved quality of life as material well- being improved • Provide incentives for younger population to remain in old-established estates, such as Tiong Bahru or Toa Payoh • Reverse the trend of younger families moving out of older estates for newer and more modern flats in newer estates • Prevent mature estates from becoming ‘greying’ towns • Prevent commercial areas around mature estates from becoming less economically vibrant, and facilities such as schools from being under-used Estate Upgrading: Maintaining the value of HDB Flats

Estate Renewal Strategy : to bring older HDB estates closer to standards of newer ones and safeguard property value

A) Upgrading Flat Level Block Level Precinct Level Programmes Home Lift Upgrading Neighbourhood Improvement Programme Renewal Programe Programme & Enhancement for Active Seniors (EASE)

Selective En Bloc B) Redevelopment Redevelopment Remaking Our Programmes Scheme Heartland Upgrading Programmes From this… … to this

Lift Upgrading Programme

Neighbourhood Renewal Programme

Former Block 79 Toa Payoh Central (10-storey, 369 units of 3-room flats) Selective Enbloc Redevelopment Scheme … to this

Current Blocks 79A/B/C/D/E Toa Payoh Central (10/40-storey, 1,158 units of 4-/5-room flats) Key Success Factors